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Two consultation documents on modernising HM Revenue & Customs (HMRC) powers, deterrents and safeguards are published today.

The first paper contains proposals for modernising and improving HMRC’s information powers, and accompanying safeguards, in two key areas:

· bulk information powers – these allow HMRC to gather specific pieces of information about a group of taxpayers for use in risk analysis e.g. interest paid by banks without deducting tax; and

· specialist unnamed taxpayer powers – these allow HMRC, in certain tightly-described circumstances, to ask for information from a third party about an unnamed taxpayer, for example, to check a transaction where it’s not clear who the relevant taxpayer is.

The second consultation looks at ideas for a new and modernised excise checking framework, as well as ways of improving excise administrative procedures, in order to reduce admin burdens for business. The proposals cover excise duties on alcohol, tobacco, energy products, gambling duties and air passenger duty.

The consultations follow the introduction in April 2009 of a new compliance checking framework for a range of taxes, which brought in a new set of rules and safeguards for HMRC inspections, visits and enquiries across a range of taxes.

The consultation documents, and accompanying Impact Assessments, are available on the HMRC website at www.hmrc.gov.uk/consultations (click the “current consultations” option).

The deadline for submitting comments is 1 October 2009.

1. The full titles of the consultation documents are “Modernising Powers, Deterrents and Safeguards: Bulk and specialist information powers” and “Modernising Powers, Deterrents and Safeguards: Excise: Modernisation and Compliance Checks”.

2. Responses to the consultation documents can be made by e-mail to: powers.review-of-hmrc@hmrc.g si.gov.uk or by post to: HMRC Powers Review, Room 1/72, 1 st Floor, 100 Parliament Street, London SW1A 2BQ or by fax to 020 7147 2375.

3. The new compliance checking framework introduced in April 2009 currently covers: Income Tax, Capital Gains Tax, VAT, PAYE, the Construction Industry Scheme and Corporation Tax. The 2009 Finance Bill contains measures to extend this to other taxes. For more information, visit the HMRC website at www.hmrc.gov.uk/ab out/new-compliance-checks.htm

4. The Review of Powers, Deterrents and Safeguards was set up to provide a framework of law and practice for HMRC that is appropriate to the merged Department’s tasks, and allows those tasks to be carried out effectively and efficiently while also providing appropriate safeguards for citizens. More information is available about the review at: www.hmrc.gov.uk/about/powe rs-appeal.htm. The Review’s work programme is available at www.hmrc.gov.uk/ pbr2008/review-work-prog-2401.pdf.